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Do you get child tax credit with Universal Credit?
The answer to this question is no. Child Tax Credit ends on 5 April 2025. No more child tax credit payments from the UK government will be made after that. This is because Child Tax Credit and five other benefits have been replaced by Universal Credit. If you need help with the costs of raising a child, you now have to make a claim for Universal Credit instead.
How can I claim Universal Credit instead?
You will be sent a letter, if you are eligible for Universal Credit. For details on how to apply for Universal Credit, see the bottom of this article.
What is child tax credit?
Child Tax Credit is a means-tested benefit designed to help people on low incomes with childcare costs. It is available to people in England, Wales, Scotland and Northern Ireland.
People receiving Universal Credit are eligible for up to 85% of their childcare costs, compared to the 70% you could previously claim through Child Tax Credits.
What are the Child Tax Credit rates for the 2024/2025 tax year?
| Element | Yearly amount |
|---|---|
| The basic amount (this is known as ‘the family element’) | Up to £545 |
| For each child (this is known as ‘the child element’) | Up to £3,455 |
| For each disabled child | Up to £4,170 (on top of the child element) |
| For each severely disabled child | Up to £1,680 (on top of the child element and the disabled child element) |
Universal Credit vs Child Tax Credit: How do the changes affect you?
Child Tax Credit and other benefits including Working Tax Credit, now come under Universal Credit. This means new claimants have to apply for the child element of Universal Credit.
People already claiming Child Tax Credit should have moved to the new benefit system before March 2023.
To be eligible, you must live in the UK, be low on income or out of work, be 18 or over, under state pension age, have less than £16,000 in savings between you and your partner.
In some circumstances, 16 and 17-year-olds will be eligible (such as if they are responsible for a child or if they do not have parental support).
Universal Credit has three elements to help parents:
Child element:
The child element of Universal Credit helps with the costs of raising a child. You can claim this for all qualifying children born before 6 April 2017.
Disabled child addition
This helps with additional costs of raising a disabled child. It is paid at a lower or higher rate depending on the severity of the disability and the needs of your child.
Childcare cost element
Under Universal Credit, the childcare cost element means that you are eligible to have up to 85 per cent of your registered childcare cost covered each month.
Parents previously were required to pay childcare fees upfront and then claim back the amount from the government. Now, parents can claim this funding upfront. This saves many families from short term debt.
To be eligible for the childcare cost element, you have to either be in paid work or you have an offer to start working before your next Universal Credit assessment period.
For couples, both must work to qualify unless they are unable to care for their child due to limited work capabilities or they are caring for a child with severe disabilities.
How much will you get on Universal Credit?
Universal Credit payments are made up of a standard allowance as well as extra amounts if you have children.
Help with childcare costs
You can claim back up to 85% of your childcare costs if you’re working.
How much childcare support via Universal Credit you can claim is £1,014.63 per month for one child and £1,739.37 per month for two or more children.
For your first child
• £333.33 a month – if they were born before 6 April 2017.
• £287.92 a month- if born on or after 6 April 2017.
Your second child and other eligible children
• £287.92 a month per child.
If you have a disability
- £156.11 a month
If your child is severely disabled
• £487.58 a month
Who is eligible for childcare element of Universal Credit?
Working families with children under 17 can claim Universal Credit in England, Wales, Scotland and Northern Ireland.
The childcare needs to be from a registered provider. You can get help paying for childcare including nurseries, childminders, breakfast clubs, after school care and holiday clubs.
To be eligible for the childcare cost element of Universal Credit, you must be in paid work or have an offer to start working before your next Universal Credit assessment period.
To be eligible:
- You must live in the UK. You should have a low income or be out of work, be aged 18 or over and under state pension age. You must have less than £16,000 in savings and investments between you and your partner.
- If you live with a partner, you both need to be in paid work (unless your partner cannot look after your children).
- If you’re on sick leave, you may also be eligible if you’re getting Statutory Sick Pay
- If you’re on maternity, paternity or adoption leave, you may also be eligible if you’re getting either Statutory Maternity Pay, Statutory Paternity Pay, Statutory Shared Parental Pay, Statutory Adoption Pay or Maternity Allowance.
You can claim childcare costs for all the children you’re responsible for, until the 31 August after their 16th birthday.
To get help with childcare costs, you have to prove and report childcare cost payments for each child. Proof could include invoices, contracts, receipts or bank statements.
You could also claim for childcare costs in advance, up to three months. You will then receive payments during the months of childcare.
How to apply for Universal Credit
To get help with childcare costs, you can visit the government website to apply for Universal Credit.
Alternatively, call the helpline number on 0800 328 5644 (0800 328 1744 for Welsh speakers).
For more information on how to get help with childcare costs, check out the nursery fees advice section.
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